A merchandise credit card is typically offered by a specific retailer or a group of affiliated stores or can also be known as easy approval store credit cards. It functions as a form of in-store credit and can be offered as store credit cards for bad credit, allowing customers to make purchases exclusively within the retailer's network. These cards are often tailored to attract loyal customers with special promotions, discounts, or rewards. While merchandise credit card can be convenient for frequent shoppers, they have limited usability outside of the affiliated stores.

On the other hand, catalog credit cards are issued by companies that operate mail-order or online catalogs. These cards enable customers to make purchases from a wide range of products featured in the catalogs. Catalog credit cards are more versatile, as they can be used to shop from different merchants within the catalog's network. They often come with specific credit limits and may offer benefits such as flexible payment options or special promotions.

In summary, while both merchandise cards and catalog credit cards offer credit for purchases, merchandise cards are limited to specific retailers, while catalog credit cards provide more versatility and access to a wider range of merchants. The choice between the two depends on individual shopping preferences and the desired level of flexibility in purchasing options.